Microsoft Finally Closes Heavily Scrutinized $69 Billion Activision Blizzard Purchase
Microsoft (NASDAQ: MSFT) has officially finalized its $69 billion acquisition of game publishing behemoth Activision Blizzard (NASDAQ: ATVI), marking it as the tech giant’s largest purchase in its nearly half-century existence. This merger comes after surmounting regulatory hurdles in both the U.K. and Europe.
Activision Blizzard, who is behind prominent video game titles like Call of Duty, Diablo, and Warcraft, reported revenue of $7.5 billion in its most recent fiscal year. In contrast, Microsoft’s sales towered at $212 billion. Phil Spencer, CEO of Microsoft Gaming, expressed his enthusiasm about integrating iconic franchises from Activision, Blizzard, and King into Microsoft’s Game Pass and hinted at more updates in the near future.
The deal wasn’t without its challenges. Initially anticipated to conclude by June 2023, the acquisition faced regulatory pushback from entities like the U.S.’s Federal Trade Commission (FTC), the European Commission, and the U.K.’s Competition and Markets Authority (CMA).
To appease European concerns, Microsoft provided free streaming licenses for their Activision Blizzard games to consumers in the European Economic Area. They also inked deals with rivals Nintendo and Sony, ensuring them access to Call of Duty games for a decade. Furthermore, agreements were signed with cloud-gaming entities, such as Nvidia and Nware.
The FTC, however, remained skeptical. Victoria Graham, an FTC spokesperson, stated that they would keep scrutinizing the merger, especially with the newly introduced Ubisoft agreement, as they believe it poses a competitive threat.
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